1. Acknowledgement
“It is not possible to prepare a project report without the assistance & encouragement of
other people. This one is certainly no exception.”
On the very outset of this report, I would like to extend my sincere & heartfelt obligation
towards all the personages who have helped me in this endeavor. Without their active
guidance, help, cooperation & encouragement, I would not have made headway in the project.
I am ineffably indebted to Mr. Jaipal Singh for conscientious guidance and encouragement to
accomplish this assignment.
I am extremely thankful and pay my gratitude to my faculty Ms. Kamayani and our Head of
department Dr. Divya Gangwar for her valuable guidance and support on completion of this
project in its presently.
I extend my gratitude to Northern India Engineering College for giving me this opportunity.
I also acknowledge with a deep sense of reverence, my gratitude towards my parents and
member of my family, who has always supported me morally as well as economically.
At last but not least gratitude goes to all of my friends who directly or indirectly helped me to
complete this project report.
Any omission in this brief acknowledgement does not mean lack of gratitude.
2. CHAPTER : 1
OBJECTIVES OF STUDY
The primary objective of the study was to get awareness about the stock market, its
variables and the various factors that govern the stock market and also have to practice
trading in real life through our own De-mat account with the help of software
"TRADE TIGER" provided to us by Sharekhan.
The main objectives of my study were:
1. To know about the stock exchanges of India.
2. To learn the various terminologies of the stock market.
3. How to analyze the share market.
4. How to study the market charts and making our own predictions.
5. To understand savings, investment, inflation and returns.
3. CHAPTER : 2
INTRODUCTION TO COMPANY
Sharekhan is one of the leading retail brokerage arm of Mumbai-based SSKI
(SHANTILAL, SHEWANTILAL, KANTILAL AND ISHWARNATH) Group which
was running sucessfully since 1922 in the country. Sharekhan offers its customers a
wide range of equity related services including trade execution on BSE, NSE,
Derivatives, depository services, online trading, investment advice etc.
The firm’s online trading and investment site - www.sharekhan.com - was launched
on Feb 8, 2000. The site gives access to superior content and transaction facility to
retail customers across the country. Known for its jargon-free, investor friendly
language and high quality research, the site has a registered base of over one lakh
customers. The number of trading members currently stands at over 3 Lacs.
Sharekhan alone accounts for 32 per cent of the volumes traded online. The
objective has been to let customers make informed decisions and to simplify the
process of investing in stocks.
On April 17, 2002 Sharekhan launched Speed Trade, a net-based executable
application that emulates the broker terminals along with host of other information
relevant to the Day Traders. This was for the first time that a net-based trading station
of this caliber was offered to the traders. In the last six months SpeedTrade has
become a de facto standard for the Day Trading community over the net.
Sharekhan’s ground network includes over 588 centres in 148 cities in India.
The Morakhiya family holds a majority stake in the company. HSBC, Intel & Carlyle
are the other investors.
With a legacy of more than 80 years in the stock markets, the SSKI group ventured
into institutional broking and corporate finance 18 years ago. Presently SSKI is one of
the leading players in institutional broking and corporate finance activities. SSKI
holds a sizeable portion of the market in each of these segments. SSKI’s institutional
broking arm accounts for 7% of the market for Foreign Institutional portfolio
investment and 5% of all Domestic Institutional portfolio investment in the country. It
has 60 institutional clients spread over India, Far East, UK and US. Foreign
4. Institutional Investors generate about 65% of the organization’s revenue, with a daily
turnover of over US$ 2 million. The Corporate Finance section has a list of very
prestigious clients and has many ‘firsts’ to its credit, in terms of the size of deal, sector
tapped etc. The group has placed over US$ 1 billion in private equity deals. Some of
the clients include BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison,
Planetasia, and Shopper’s Stop.
VISION
1. To be the top most company for providing investment advisory and financial planning
services in India.
2. To be a leading investment intermediary for transaction through both online and
offline medium
MISSION
To educate and empower the indivisual investor to make better investment decisions
through quality advice and superior service.
1. Educate and empower
a) Research backed advice, which is easy to understand, retail specific and
discipline
b) Total equity solutions for the entire investment process
c) Relationship Management
2. Superior service
a) Integrity
b) Transparency
c) Professionalism
d) Information - product, news, operation
e) Hassle free trading
5. PRODUCTS OFFERED BY SHAREKHAN
EQUITIES &
DERIVATIVES
PORTFOLIO
MANAGEMENT AND
STRUCTURED PRODUCTS
DEPOSITORY
SERVICES
IPO, MUTUAL FUND
RESEARCH
COMMODITIES
Your Guide to the
Financial Jungle
Sharekhan
6. REASONS TO CHOOSE SHAREKHAN LIMITED
Experience
SSKI has more than eight decades of trust and credibility in the Indian stock market.
In the Asia Money broker's poll held recently, SSKI won the 'India's best broking
house for 2004' award. Ever since it launched Sharekhan as its retail broking division
in February 2000, it has been providing institutuonal-level research and broking
services to individual invcestors.
Technology
With our online trading account you can buy and sell shares in an instant from any PC
with an internet connection. You will get access to our powerful online trading tools
that will help you take complete control over your investment in shares.
Accessibility
Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION servies
for investors. These services are accessible through our centres across the country
(Over 588 locations in 148 cities) over the internet (through the website
www.sharekhan.com) as well as over the Voice Tool.
Knowledge
In a business where the right information at the right time can translate into direct
profits, you get access to a wide range of information on our content-rich portal,
sharekhan. You will also get a useful set of knowledge-based tools that will empower
you to take informed decisions.
Convenience
You can call our Dial-N-Trade number to get investment advice and execute your
transactions. We have a dedicated call-centre to provide this service via a Toll Free
Number 1800-22-7500 & 1800-22-7050 from anywhere in India.
Customer Service
Our customer service team will assist you for any help that you need relating to
transactions, billing, demat and other queries. Our customer service can be contracted
via a toll-free number, email or live chat on www.sharekhan.com.
7. Investment Advice
Sharekhan has dedicated research teams of more than 30 people for fundamental and
technical researchs. Our analysts constantly track the pulse of the market and provide
timely investment advice to you in the form of daily research emails, online chat,
printed reports and SMS on your mobile phone.
Benefits
1. Free Depository A/c
2. Secure Order by Voice Tool Dial-n-Trade.
3. Automated Portfolio to keep track of the value of your actual purchases.
4. 24x7 Voice Tool acess to your trading account.
5. Personalised Price and Account Alerts delivered instantly to your Cell Phone & E-
mail address.
6. Special Personal Inbox for order and trade confirmations.
7. On-line Customer Service via Web Chat.
8. Anytime Ordering.
SHAREKHAN OFFERS YOU THE FOLLOWING:-
CLASSIC ACCOUNT
This is an User Friendly Product which allows the client to trade through website
www.sharekhan.com and is suitable for the retail investor who is risk-averse and
hence prefers to invest in stocks or who do not trade too frequently.
Features
a) Online trading account for investing in Equity and Derivatives via
www.sharekhan.com
b) Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE.
c) Integration of On-line trading, Saving Bank and Demat Account.
d) Instant cash transfer facility against purchase & sale of shares.
e) Competative transaction charges.
f) Instant order and trade confirmation by E-mail.
g) Streaming Quotes (Cash & Derivatives).
h) Personlized market watch.
i) Single screen interface for Cash and derivatives and more.
j) Provision to enter price trigger and view the same online in market watch.
8. SPEED TRADE ACCOUNT
This is an internet-based software application, that enables you to buy and sell in an
instant. It is ideal for active traders and jobbers who transact frequently during day’s
session to capitalise on intra-day price movement.
Features
a) Instant order Execution and Confirmation.
b) Single screen trading terminal for NSE Cash, NSE F&O & BSE.
c) Real-time streaming quotes, tic-by-tic charts.
d) Market summary (Cost traded scrip, highest calue etc.)
e) Hot keys similar to broakers terminal.
f) Alerts and reminders.
g) Back-up facility to place trades on Direct Phone lines.
TRADE TIGER
TRADE TIGER is a next generation online trading product that brings the power of
broker's terminal to customer PC. It is session to capitalize on intraday price
movement. Trade tiger is an internet-based application available on a CD, which
provides everything which trader needs on one screen.
Features
a) A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX,
NCDEX, Mutual Funds, IPOs.
b) Multiple Charts with tick by tick Intraday and at End of Day Charting powered
with various studies.
c) Instant order Execution and Confirmation.
d) User can save his own defined screen as well as graph ternplate, that is, saving the
layout for future use.
e) User defined alert settings on input Stock Price trigger.
DIAL-N-TRADE
Along with enabling access for your trade online, the CLASSIC and TRADE-TIGER
ACCOUNT also gives you our Dial-ntrade serives. With this service, all you have to
do is dial our dedicated phone lines 1-800-22-7500, 3970-7500.
9. AWARDS AND ACHIEVEMENTS
Rated among the top 20 wired companies along with Reliance, HUJI, Infosys etc. by
"BUSINESS TODAY" January 2004 edition.
Awarded "Top Domestic Brokerage House" four times by Euro Money and Asai
Money.
Pioneers of online trading n India amongst the top 3 online trading websites from
India. Most preferred financial destination among online broking customers.
India's most preffered brokers within 5 years "Awaaz Customers Award 2005"
The team has completed over US $5 billion worth of deals in last 5 years - making it
amongst the most significant players raising equity in the indian market.
10. CHAPTER : 3
REVIEW OF LITERATURE
STOCK MARKET IN INDIA
A stock market or equity market is a public entity (a loose network of economic
transactions, not a physical facility or discrete entity) for the trading of company stock
(shares) and derivatives at an agreed price; these are securities listed on a stock
exchange as well as those only traded privately.
In the stock market, purchases and sales of shares are affected in condition of free
competition. Government securities are traded outside the trading ring in the form of
over the counter sales or purchase. The bargains that are struck in the trading ring by
the members of the stock exchanges are at the fairest prices determined by the basic
laws of supply and demand.
The Bombay stock exchange (BSE) and The National stock exchange (NSE) are the
two primary exchanges in India.
DEFINATION OF STOCK ENCHANGE:
STOCK EXCHANGE is an organized and regulated financial market where securities
are bought and sold at prices governed by the forces of demand and supply. The
securities include:
Shares of public company
Government securities
Bonds
11. FUNCTIONS OF STOCK EXCHANGE:
1. Continuous and ready market for securities
Stock exchange provides a ready and continuous market for purchase and sale of
securities. It provides ready outlet for buying and selling of securities. Stock exchange
also acts as an outlet/counter for the sale of listed securities.
2. Facilitates evaluation of securities
Stock exchange is useful for the evaluation of industrial securities. This enables
investors to know the true worth of their holdings at any time. Comparison of
companies in the same industry is possible through stock exchange quotations (i.e
price list).
3. Encourages capital formation
Stock exchange accelerates the process of capital formation. It creates the habit of
saving, investing and risk taking among the investing class and converts their savings
into profitable investment. It acts as an instrument of capital formation. In addition, it
also acts as a channel for right (safe and profitable) investment.
4. Provides safety and security in dealings
Stock exchange provides safety, security and equity (justice) in dealings as
transactions are conducted as per well defined rules and regulations. The managing
body of the exchange keeps control on the members. Fraudulent practices are also
checked effectively. Due to various rules and regulations, stock exchange functions as
the custodian of funds of genuine investors.
5. Regulates company management
Listed companies have to comply with rules and regulations of concerned stock
exchange and work under the vigilance (i.e supervision) of stock exchange authorities.
12. 6. Facilitates public borrowing
Stock exchange serves as a platform for marketing Government securities. It enables
government to raise public debt easily and quickly.
7. Provides clearing house facility
Stock exchange provides a clearing house facility to members. It settles the
transactions among the members quickly and with ease. The members have to pay or
receive only the net dues (balance amounts) because of the clearing house facility.
8. Facilitates healthy speculation
Healthy speculation, keeps the exchange active. Normal speculation is not dangerous
but provides more business to the exchange. However, excessive speculation is
undesirable as it is dangerous to investors & the growth of corporate sector.
9. Serves as Economic Barometer
Stock exchange indicates the state of health of companies and the national economy. It
acts as a barometer of the economic situation / conditions.
13. MAJOR STOCK EXCHANGES OF INDIA:
NATIONAL STOCK EXCHANGE (NSE):
The National Stock Exchange (NSE) is stock exchange located in Mumbai, India. It
is the 11th largest stock exchange in the world by market capitalization and largest in
India by daily turnover and number of trades, for both equities and derivative trading.
NSE has a market capitalization of around US$1 trillion and over 1,652 listings as of
July 2012
The NSE's key index is the S&P CNX NIFTY (known as the NSE NIFTY) an index
of fifty major stocks weighted by market capitalization.
The National Stock Exchange of Independent India was set up by Government of
India on the recommendation of Pherwani Committee in 1991. Promoted by leading
Financial Institutions essentially led by IDBI at the behest of the Government of India,
it was incorporated in November 1992 as a tax-paying company. In April 1993, it was
recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956.
NSE commenced operations in the Wholesale Debt Market (WDM) segment in June
1994. The Capital market (Equities) segment of the NSE commenced operations in
November 1994, while operations in the Derivatives segment commenced in June
2000.
Objectives
1. Establishing nationwide trading facilities for all types of securities.
2. Ensuring equal access to investors all-over the country through an appropriate
communication network.
3. Meeting international benchmarks and standards.
4. Enabling shorter settlement cycles and book entry settlements.
NSE also conducts online examination and awards certification, under its programs of
NSE's Certification in Financial Markets (NCFM). Currently, certifications are
available in 32 modules, covering different sectors of financial and capital markets,
both at beginner and advanced levels.
14. BOMBAY STOCK EXCHANGE (BSE):
Bombay Stock Exchange, commonly referred to as the BSE is a stock exchange
located on Dalal Street, Mumbai, Maharashtra, India. It is the 10th largest stock
exchange in the world by market capitalization. Established in 1875, BSE Ltd.
(formerly known as Bombay Stock Exchange Ltd.), is Asia’s first Stock Exchange and
one of India’s leading exchange groups. Over the past 137 years, BSE has facilitated
the growth of the Indian corporate sector by providing it an efficient capital-raising
platform. Popularly known as BSE, the bourse was established as "The Native Share
& Stock Brokers' Association" in 1875.
The Bombay Stock Exchange is the oldest exchange in India. It traces its history to the
1855, when four Gujarati and one Parsi stockbroker would gather under banyan trees
in front of Mumbai's Town Hall. The location of these meetings changed many times,
as the number of brokers constantly increased. The group eventually moved to Dalal
Street in 1874 and in 1875 became an official organization known as 'The Native
Share & Stock Brokers Association'.
In 1956, the BSE became the first stock exchange to be recognized by the Indian
Government under the Securities Contracts Regulation Act.
In 1986 it developed the BSE SENSEX index, giving the BSE a means to measure
overall performance of the exchange. the Bombay Stock Exchange switched to an
electronic trading system in 1995.
15. SOURCES OF DATA
There are two main sources of data
1. Primary Data
2. Secondary Data
Primary Data
The data, which is collected directly from the respondent to the base of
knowledge and belief of the research, is called primary data. The most preferred way
is to interview the individuals to get a sense of how they feel
Secondary Data
When the data is collected and compiled from the published nature or any
others primary data is called secondary data.
So far as our research is concerned, we have not collected any information from any
sources. So, we have not used secondary data for our research.
LIMITATIONS OF STUDY
Despite of the training my level best, there were still some limitation which I
think remains there to draw fruitful conclusion.
Personal Bias:
Individuals may have personal bias towards particular investment option so they may
not give correct information and due to which the conclusion may be derived.
Time Limit:
The time duration given for the research is less.
Area:
The area was limited to Delhi only, so we cannot know the degree of literacy outside
the city.
16. CHAPTER : 4
DATA ANALYSIS AND FINDINGS
1) Are you aware of investment options?
KNOWLEDGE PERCENTAGE
Yes 78%
No 22%
TOTAL 100%
FINDING:
Only 78% of people know the exact meaning of investment. Because of remaining
22% take his/her residential property as an investment. According to law purpose it is
not an investment because it not create any profit for the owner.
Yes
No
17. 2) What is most preferable investment scenario?
INVESTMENT SCENARIO PERCENTAGE
Real Estate 20%
Banks 24%
Derivative & Securities market 28%
Insurance 4%
Bonds 20%
Others 4%
TOTAL 100%
FINDING:
Today in the changing scenario people are more interested in Derivative and Securities
market. It can be seen from the graph that 28% goes in the favor of Derivative and
Securities market. 24% are interested in Bank Securities, 20% are interested in bond
and real estate and a very small amount of investors are interested to invest in
insurance securities.
%AGE
Real Estate
Banks
Derivatives and
Securities market
Insurance
Bonds
Others
18. 3).What is the basic purpose of your investment?
INVESTMENT PURPOSE PERCENTAGE
Liquidity 30%
Returns 25%
Capital Appreciation 10%
Tax Benefits 20%
Risk Covering 5%
Others 10%
TOTAL 100%
FINDING:
30% people are interested in liquidity, 25% in returns and 10% tax benefits. And
remaining 20% are interested in capital appreciations, 15% in risk covering and others.
%AGE
Liquidity
Returns
Capital appreciation
Tax benefits
Risk covering
Others
19. 4) Most important things you take into your mind while making investments?
FACTOR PERCENTAGE
Risk 8%
Return 18%
Both 74%
FINDING:
74% people are considered the both factors risk as well as returns but, only 8%
considered the risk and 17% on returns factor.
%AGE
Risk
Returns
Both
20. 5) Do you heard about Sharekhan ltd ?
KNOWLEDGE PERCENTAGE
Yes 58%
No 42%
TOTAL 100%
FINDING:
The chart shows that the Brand image should be further leveraged by the company to
increase the market share.
%AGE
Yes
No
21. 6) Do you know about the facilities provided by Sharekhan?
KNOWLEDGE PERCENTAGE
Yes 36%
No 64%
TOTAL 100%
FINDING:
Although there is sufficiently high brand equity among the target audience, it is to be
noted that the customers are not aware of the facilities provided by the company
meaning thereby, that the company should concentrate more towards the promotional
tools and increase its focus on product awareness rather than brand awareness
%AGE
Yes
No
23. 23
CHAPTER : 6
RECOMMENDATIONS
Sharekhan needs to make its marketing team strong and also it should increase marketing
activities such as promotional campaigns.
Sharekhan should educate the investors about their products and services by organizing
classes, corporate presentations, taking part in consumer fairs and organizing events.
Sharekhan can also use Newspapers and Local News Channels as a medium of advertising.
Due to investors of online trading there has been a great benefit to the investors as they
could sell/buy shares as and when required and that to with online trading.
The brokers has a greater scope than compared to the earlier times because of invention of
online trading.
Sharekhan should widen their reach tools as they need more relationship managers who
will tell the customers about investment.
The company should also come up with schemes wherein brokerage is less than the earlier
existing schemes. These schemes should be provided to those customers who do not trade.
Sharekhan should tie up with more banks for online fund transfer that reduces the paper
work for customer and ease in trading.
The company can increase the customer base if it reduces the account opening charges
which will boost the competition.
The company should revise the advertising strategy to increase its brand awareness. I
suggest making advertisement on television so that maximum market can be targeted.
The company should focus on the customer satisfaction and provide them with full care
and advice even after they get a De-mat account opened.
25. 25
CHAPTER - 8
ANNEXURE
QUESTIONNAIRE
1. Name:____________________________________________
2. Gender: Male Female
3. Age: 21-35 36-50 Above 50
4. Education: ________________________________________
5. Occupation: Professional Businessman
Govt. Employee Employee Working
Q.1 Do you invest your surplus money in saving instrument?
Yes No
Q. 2 If yes where do you invest your savings?
Bank F.D. Gold
Post Schemes Equities
Insurance Derivatives
Mutual fund Commodities
26. 26
Q.3 If you invest in derivatives or commodities, which would be your first preference from
the list given below?
Bullion Oil and oil seed
Spices Metal
Fiber F&O
Q.4 Which factors plays crucial role when you make decision to invest in Derivatives &
Commodity?
Risk Reduction Leverage Benefit
Arbitrage Benefit Speculative Motive
Liquidity Preference
Q.5 Which medium do you use to invest in Derivatives & Commodities?
Broker Internet
Magazine News Channels
Q.6 Which Stock exchange would you prefer to carry out your transaction?
BSE NSE
MCX NCDEX
Q.7 Do you consider investments in Derivatives and Commodities are safer than other
investment avenues?
Yes No
Q.8 If No, than what are constraints that are holding you back?
Lack of Knowledge
Lack of Guidance from Broker
Lack of Funds Availability
Lack of Risk Taking Ability
27. 27
Q.9 How do you take decisions if you want to trade in Derivatives & Commodities?
Independently Broker/Agent
News Channels Newspapers
Internet Tax Consultant
Q.10 How much time will you be able to devote for learning Derivatives & Commodities?
1/2 Hour 1 Hour
2 Hour
Q.11 According to you which medium is more reliable for trading in Derivatives &
Commodities?
Stock Broking Companies
Franchises
Online
Q.12 Name any two stock broking companies that deal in Derivatives & Commodities?
1._____________ 2.________________
